Why Teladoc Health Was a Sickly Stock Today
Teladoc Health's (NYSE: TDOC) stock wasn't the picture of financial health Wednesday. Investors traded it down by nearly 9%, after an analyst dinged the shares with a recommendation downgrade.
That analyst, Sandy Draper of Guggenheim, downgraded his Teladoc recommendation to sell from the previous neutral, with a price target of $25 per share. Even after Wednesday's drop, that implies more than 30% downside to the stock's level.
Draper feels that Teladoc remains overly exposed to the consumer segment, as it derives roughly 40% of its revenue from such users. A strong dollar also won't help; as a telehealth services provider, of course it's not particularly constrained by borders. As for business spending, the analyst wrote of a "challenging macro environment that is elongating sales cycles in enterprise decisions."
Source Fool.com
